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Graham(GHM) - 2025 Q3 - Quarterly Results
GHMGraham(GHM)2025-02-07 11:45

Revenue and Sales Performance - Revenue increased by 7.3% to 47.0million,drivenbystrongdemandinkeyend−markets[5]−NetsalesforthethreemonthsendedDecember31,2024,were47.0 million, driven by strong demand in key end-markets[5] - Net sales for the three months ended December 31, 2024, were 47,037,000, representing a 7% increase compared to 43,818,000forthesameperiodin2023[35]−Thecompanyreporteda1043,818,000 for the same period in 2023[35] - The company reported a 10% increase in net sales for the nine months ended December 31, 2024, totaling 150,551,000 compared to 136,463,000intheprioryear[35]−NetsalesforQ32024were136,463,000 in the prior year[35] - Net sales for Q3 2024 were 47,037 million, an increase of 7% from 43,818millioninQ32023[41]ProfitabilityandMargins−Grossprofitmarginimprovedby260basispointsto24.843,818 million in Q3 2023[41] Profitability and Margins - Gross profit margin improved by 260 basis points to 24.8% of sales, with net margin increasing by 300 basis points to 3.4% of sales[5] - Gross profit increased by 20% to 11,686,000 for the three months ended December 31, 2024, compared to 9,723,000intheprioryear[35]−OperatingprofitforthethreemonthsendedDecember31,2024,was9,723,000 in the prior year[35] - Operating profit for the three months ended December 31, 2024, was 2,210,000, a significant increase of 143% from 911,000inthesameperiodlastyear[35]−AdjustedEBITDAforQ32024reached911,000 in the same period last year[35] - Adjusted EBITDA for Q3 2024 reached 4,027 million, up 36% from 2,965millioninQ32023,withanadjustedEBITDAmarginof8.62,965 million in Q3 2023, with an adjusted EBITDA margin of 8.6% compared to 6.8% last year[41] Net Income and Earnings Per Share - Net income per diluted share increased by 600% to 0.14, while adjusted net income per diluted share rose by 38% to 0.18[5]−NetincomeforthethreemonthsendedDecember31,2024,was0.18[5] - Net income for the three months ended December 31, 2024, was 1,588,000, an increase of 862% compared to 165,000intheprioryear[35]−AdjustednetincomeforQ32024was165,000 in the prior year[35] - Adjusted net income for Q3 2024 was 1,966 million, compared to 1,451millioninQ32023,reflectingagrowthof361,451 million in Q3 2023, reflecting a growth of 36%[43] - GAAP net income per diluted share for Q3 2024 was 0.14, up from 0.02inQ32023[43]OrdersandBacklog−Orderstotaled0.02 in Q3 2023[43] Orders and Backlog - Orders totaled 24.8 million, with a year-to-date book-to-bill ratio of 1.0x and a backlog of 385million[5]−Backlogatquarterendwas385 million[5] - Backlog at quarter end was 384.7 million, down 3.6% year-over-year, with 45% to 50% expected to convert to sales in the next twelve months[17] - The book-to-bill ratio is used to track growth prospects, calculated as net orders divided by net sales[31] - The company believes tracking orders and backlog are useful as they often serve as leading indicators of future performance[30] Cash and Capital Expenditures - Cash and cash equivalents were 30.0million,upfrom30.0 million, up from 16.9 million at the end of fiscal 2024[12] - Cash and cash equivalents increased to 30,046,000asofDecember31,2024,from30,046,000 as of December 31, 2024, from 16,939,000 at the end of March 2024[37] - Capital expenditures for the first nine months of fiscal 2025 were 13.8million,withanincreaseinexpectedcapitalexpendituresto13.8 million, with an increase in expected capital expenditures to 15.0 million to 19.0 million[13] Operating Expenses - SG&A expenses totaled 9.7 million, or 20.6% of sales, reflecting continued investments in people, processes, and technology[10] - Operating expenses increased by 24% for the nine months ended December 31, 2024, totaling 26,821,000comparedto26,821,000 compared to 21,563,000 in the previous year[35] Guidance and Future Outlook - The company reiterated full-year guidance for net sales between 200millionto200 million to 210 million and adjusted EBITDA between 18millionto18 million to 21 million[19] - The company plans to complete the Barber-Nichols performance bonus expense by the end of fiscal year 2026, with expenses of $0.8 million for Q3 2025[44]